Today's Coming Crisis Movie

Wednesday, May 23, 2012

Iran squeezed as sanctions tighten

Despite recent assurances by senior officials in Iran that the country will weather sanctions targeting the country's petroleum and financial sectors, the international effort is having a noticeable impact on the Iranian economy. And the situation may well figure into talks scheduled for Wednesday in Baghdad over the Islamic Republic's disputed nuclear program, U.S. officials say.

Iranian exports of crude oil fell sharply in April, and could be down by as much as 1 million barrels a day, as many countries seek to reduce their imports of Iranian oil ahead of sanctions set to come into full effect later this summer, the International Energy Agency (IEA) said in a report released earlier this month.

President Barack Obama has until June 28 to decide whether countries that purchase Iranian oil have significantly reduced their purchases, or face a cutoff in access to the U.S. financial system under legislation signed in December. Read More